Interregional Training Course on Nuclear Power Plant Financing and Risk Allocation - Advanced Approaches

Date:	October 3, 2022 – October 7, 2022
Location:	Argonne National Laboratory, Lemont, IL, USA

Purpose

The purpose of this training course is to improve knowledge and develop skills relating the financing of nuclear power plants to support decision makers and those responsible for developing and implementing a nuclear programme in Member States considering the introduction of nuclear power, as well as those preparing to invite bids or negotiate a contract for a nuclear power plant. This training course is the continuation of the virtual training course on the Nuclear Power Plant Financing and Risk Allocation which was implemented on 17-19 November 2020.

Scope and Nature

Courses activities will revolve around three major inter-related objectives: (i) providing knowledge of key issues a State has to consider when establishing a nuclear power programme, specifically financing options and strategies; (ii) presentation of case studies of countries that have recently completed or are now in the process of making financial arrangements; (iii) further strengthening the networking among emerging nuclear power countries and sharing international and field experiences. The training course will cover funding issues, including alternative contracting and ownership approaches for nuclear power programmes. It will include an overview of key quantitative financial metrics, outline a general framework within which the importance of optimal financial risk allocation can be understood, and include presentations and ‘hands on’ exercises on the role of financial modelling as a tool for informed decision making. This course, planned for 5 working days, will be divided into the following 10 modules:

1. Sustainability context for nuclear energy
2. Economics and non-market considerations in comparing power generation technologies
3. Key concepts and metrics for financing decision-making
4. Sources and structures of financing (debt vs equity in capital structures; governments, export credit agency and other sources)
5. Financing and risk allocation in nuclear power projects
6. Contracting and risk allocation (EPC, PPA)
7. Financial modelling (nature, uses and limitations of financial models)
8. Nuclear project case studies
9. Economic and financial aspects of SMRs
10. Funding "back-end" liabilities

The course will be conducted by the IAEA staff, international experts, and management and technical specialists from the host country and other countries. The programme will also include discussions, case studies and exercises, peer-to-peer exchange of good practices, and working group sessions on possible solutions to common problems. In addition, the course will discuss opportunities for participants to network and continue sharing information and good practices, as well as other potential follow-up tasks and coordinated activities, as appropriate.

Expected outputs

• Improved ability to address the challenges and issues related to building a national position and financing nuclear power plants;
• Better knowledge of NPP financing and funding options as well as procurement structures and better understanding of contracting mechanisms including Engineering, Procurement and Construction (EPC) contracting;
• Improved knowledge of nuclear power economics, financial risk, and the role of financial modelling during the nuclear power plant financing process; and
• Enhanced networking opportunities among participants.